Sify posts 6 percent increase in Q2 FY 2011-12 revenue at $37 million; loss of $1.39 million

Sify Technologies, a provider of managed enterprise, network and
IT services, has posted a 5.75 percent increase in revenue during the
second quarter of fiscal year 2011-12 at $37.1 million from $35. 08 million in
the corresponding period last fiscal.

Sify’s revenue from enterprise
services grew by 7.5 percent and from software services by 22 percent.

Net loss before tax for the quarter reduced to $1.39 million, as against
a net loss of $2.74 million in the corresponding quarter previous year.

Capex during the quarter was $4.6 million.

Network services registered a growth of 18 percent over last quarter in
spite of strong pricing pressure.

The international voice business remains strong, with ILD voice
registering about 704.5 million minutes for the quarter.

The launch of its audio conferencing services has enriched our suite of
Voice service offerings to its Enterprise customers.

Enterprise Applications Services grew by 14 percent over the previous
quarter and 53 percent over the same quarter last year.

The eLearning business showed quarter on quarter growth, aided by new
client wins as well as growth in existing customer accounts. Sify signed up 3
new large accounts across the globe, including one of the world’s largest
pharmaceutical companies.

The Hosting business registered a 77 percent growth over previous
quarter. Its Cloud services have grown by 100 percent over same quarter last
year. IT Security has grown by approximately 99 percent over previous quarter.

“Our Enterprise business continues to gain traction, supported by
domestic growth in the corporate segment and a renewed spending environment. On
the services front, the focus on Network, IT and software services as core
offerings is beginning to show results,” said Raju Vegesna, chairman and managing
director of Sify.

As the largest spender on IT and Network services, the government
represents a significant growth opportunity for Sify and will remain an
important focus area.

The recently announced telecom policy is a step in the right direction
in creating a level playing field among IT and telecom service providers. Its
SOHO/SMB base grew by 60 percent. More than half of these signups came from
Tier II and III towns helped by Sify expanding footprint. The proposal to allow
Voice-over-IP domestically in India also provides new opportunities for
data-focused operators, such as Sify.

“Visitors to our portal grew by 19 percent versus same quarter
last year, helped by the launch of health and technology portals and the
strength of Sify Sports,” Vegesna added.

Software services continue its evolution towards a strong position in
providing on-demand software-enabled services to enterprise customers. Sify’s
Skills Assessment and e-Learning solutions are gaining momentum and gaining
acceptance across a larger customer base.

Its Content and Collaboration services on SaaS and mobile platforms have
generated considerable interest from enterprises which are looking for cost
effective means of business communications.

The overall outlook for growth in India is positive and Sify continues
to invest in expanding network, data centers and other infrastructure. Its
network and data centre expansion and commissioning of cable landing station
are proceeding as per plan.

By Team
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